Andre’s parents established a college savings plan for him when he was born. They deposited $55 into the account on the last day of each month. The account has earned 7.3% compounded monthly, tax-free. How much can they withdraw on his 18th birthday to spend on his education?
2. Why is operating leverage so crucial to profit growth? Should companies be ready to replace variable costs such as labor with fixed costs such as technology and automation?